International Energy Agency reports electrification could cut fuel import costs

The International Energy Agency (IEA) reports that while electricity's share in global energy consumption is rising, the current pace of electrification remains too slow. Under a rapid transition scenario, electricity could account for 35% of final energy consumption by 2035, up from the current 23%. Such a shift could allow fossil fuel-importing nations to reduce annual import expenditures by approximately $400 billion compared to 2025 levels.

Electrification is increasingly viewed as a solution to energy security risks highlighted by Middle East conflicts and supply disruptions in the Strait of Hormuz. Expanding electric power use in transport, heating, and industry could significantly lower demand for imported fuels. Currently, electric vehicles save about 2.3 million barrels of oil per day, a figure that could reach between 10 million and 18 million barrels per day by 2035 depending on the pace of adoption.

Experts note that while technologies are largely available, further progress requires investment support, grid modernization, and consumer incentives. The benefits of electrification are also tied to the method of energy production, with a shift toward renewable and low-emission sources being essential for reducing emissions and improving air quality.